Citigroup Cuts Allison Transmission (NYSE:ALSN) Price Target to $95.00

Allison Transmission (NYSE:ALSN) had its price objective trimmed by Citigroup from $108.00 to $95.00 in a research note published on Tuesday morning,Benzinga reports. The brokerage currently has a neutral rating on the auto parts company’s stock.

A number of other analysts have also recently commented on ALSN. StockNews.com cut Allison Transmission from a “buy” rating to a “hold” rating in a research report on Thursday, March 27th. Morgan Stanley lifted their price target on Allison Transmission from $110.00 to $112.00 and gave the stock an “equal weight” rating in a research report on Tuesday, December 17th. The Goldman Sachs Group boosted their price objective on Allison Transmission from $82.00 to $94.00 and gave the company a “sell” rating in a research note on Thursday, December 12th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Allison Transmission from $129.00 to $110.00 and set a “neutral” rating on the stock in a research report on Tuesday, March 18th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and two have assigned a buy rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $99.50.

Allison Transmission Price Performance

ALSN stock opened at $88.42 on Tuesday. The business has a 50 day moving average price of $99.10 and a 200 day moving average price of $106.28. The company has a quick ratio of 2.42, a current ratio of 3.04 and a debt-to-equity ratio of 1.45. The stock has a market cap of $7.54 billion, a price-to-earnings ratio of 10.64 and a beta of 0.95. Allison Transmission has a fifty-two week low of $71.49 and a fifty-two week high of $122.53.

Allison Transmission (NYSE:ALSN) last released its quarterly earnings data on Tuesday, February 11th. The auto parts company reported $2.01 earnings per share for the quarter, topping analysts’ consensus estimates of $1.90 by $0.11. Allison Transmission had a net margin of 22.67% and a return on equity of 47.95%. Equities research analysts anticipate that Allison Transmission will post 9.06 earnings per share for the current fiscal year.

Allison Transmission declared that its Board of Directors has approved a share buyback program on Thursday, February 20th that permits the company to buyback $5.00 billion in shares. This buyback authorization permits the auto parts company to buy up to 57.1% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board believes its shares are undervalued.

Allison Transmission Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 14th. Investors of record on Monday, March 3rd were given a $0.27 dividend. This represents a $1.08 dividend on an annualized basis and a yield of 1.22%. This is a positive change from Allison Transmission’s previous quarterly dividend of $0.25. The ex-dividend date of this dividend was Monday, March 3rd. Allison Transmission’s dividend payout ratio (DPR) is 13.00%.

Insider Transactions at Allison Transmission

In other news, SVP John Coll sold 1,788 shares of the firm’s stock in a transaction that occurred on Tuesday, April 1st. The stock was sold at an average price of $95.33, for a total value of $170,450.04. Following the completion of the sale, the senior vice president now directly owns 15,388 shares of the company’s stock, valued at $1,466,938.04. This trade represents a 10.41 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Ryan A. Milburn sold 4,546 shares of the company’s stock in a transaction on Thursday, March 6th. The stock was sold at an average price of $96.20, for a total value of $437,325.20. Following the transaction, the vice president now directly owns 14,138 shares in the company, valued at $1,360,075.60. This represents a 24.33 % decrease in their position. The disclosure for this sale can be found here. Company insiders own 1.10% of the company’s stock.

Institutional Trading of Allison Transmission

Several hedge funds and other institutional investors have recently made changes to their positions in ALSN. Transce3nd LLC purchased a new position in Allison Transmission in the fourth quarter valued at about $25,000. SRH Advisors LLC purchased a new position in Allison Transmission in the 4th quarter valued at approximately $26,000. World Investment Advisors LLC purchased a new position in Allison Transmission in the 3rd quarter valued at approximately $29,000. Kestra Investment Management LLC acquired a new position in Allison Transmission during the fourth quarter worth $30,000. Finally, Thurston Springer Miller Herd & Titak Inc. acquired a new stake in Allison Transmission in the fourth quarter valued at $31,000. Institutional investors and hedge funds own 96.90% of the company’s stock.

About Allison Transmission

Allison Transmission Holdings, Inc, together with its subsidiaries, designs, manufactures, and sells fully automatic transmissions for medium- and heavy-duty commercial vehicles and medium- and heavy-tactical U.S. defense vehicles, and electrified propulsion systems worldwide. It provides commercial-duty on-highway, off-highway and defense fully automatic transmissions, and electric hybrid and fully electric systems.